B.C. mortgage delinquency at near-record lows

Dated: March 6 2019

Views: 64

B.C. mortgage delinquency at near-record lows

B.C. mortgage delinquency at near-record lows

B.C. has enjoyed near-record-low mortgage delinquency over the past four quarters, according to the latest Mortgage and Consumer Credit Trends report by the Canada Mortgage and Housing Corporation.

The analysis, which covered Q3 2018, indicated that only 0.1% of outstanding mortgages in Vancouver were delinquent in that quarter, falling from the 0.11% observed during the third quarter of 2017.

Victoria also posted good results, with delinquent mortgages accounting for only 0.12% of outstanding mortgages in Q3 2018, down from 0.13% the year prior.

These rates were markedly lower than the provincial average of a still-miniscule 0.16%, attesting to B.C. households’ steady financial footing over the past several years.

“Prior to this stability, declines in delinquency rates since 2014 can be broadly attributed to a number of factors including strong employment gains, rising home values regardless of market segment, low interest rates and strong population growth fueling stronger sales in the housing market,” the CMHC explained.

Read more: Growth of mortgage payment in hottest markets accelerates

Lower delinquencies were especially apparent in mortgages with higher limits at origination ($400,000 and greater), settling at 0.1% as of Q3 2018. This bracket accounted for approximately 65% of all outstanding mortgages in Vancouver. Furthermore, 63% of these were mortgages with limits greater than $600,000.

Conversely, delinquencies involving mortgages with smaller limits at origination (up to $200,000) were noticeably higher in both Vancouver and Victoria.

“This suggests that smaller sized mortgages are generally held by borrowers with lower incomes and/or less stable employment than borrowers holding larger mortgages.”

 

Leave a comment
Leave a commentNew user? Sign upGo to Forum section
Blog author image

Steven Axford

Steve Axford grew up in Victoria, BC and has always been active in his community. Steve is a Victoria Cougars Hockey Team alumni as well as a Victoria Shamrocks (intermediate) alumni. During his time....

Latest Blog Posts

Victoria Real Estate Market continues to outperform in unpredictable times

October 1, 2020  A total of 989 properties sold in the Victoria Real Estate Board region this September, 60.6 per cent more than the 616 properties sold in September 2019 and 1 per cent more

Read More

Choosing Flooring: 6 Things You Need to Know

When it comes to choosing new flooring for your home or apartment, the options can be overwhelming. Almost every type of flooring has some sort of advantage over other kinds, and taking in all the

Read More

Consumer interest in homeownership in Victoria unwavering over course of pandemic

A total of 989 properties sold in the Victoria Real Estate Board region this September, 60.6 per cent more than the 616 properties sold in September 2019 and 1 per cent more than the previous month

Read More

Understanding Canada’s Record Home Sales Last Month, And Why It’s Likely To Continue

Canada’s late Spring real estate market continues, but some of the pent-up demand has caught up. Canadian Real Estate Association (CREA) data show a new all-time record for August

Read More